Increasing your share

Once you own a home through the NSSE scheme, you'll be able to buy a bigger share of your home later on.

If you want to increase your share, you have to increase it by at least 5% in a year.

For example, if you bought a home and your share was 70%, you can increase it to 75% or more (but not 72%).

In most cases, you'll be able to increase your share all the way up to 100%, meaning the Scottish Government no longer has a share in your home and will not be due any money if you decide to sell it.

If you want to buy a bigger share of your home, you have to pay all the valuation and legal costs to do it as well as the administrative costs of the organisation that will handle your request.

'Golden share'

Although you can usually increase your share right up to 100%, in some circumstances the Scottish Government will keep a share of 20% of your home.

This is called a 'golden share' and usually only happens in areas where there are fewer affordable homes.

For example, if you bought a home and your share was 70%, you can only increase your share up to 80% if the shared equity agreement you entered into with the Scottish Government has a 'golden share' clause.

You should check with your solicitor to see if your shared equity agreement has a 'golden share'.

Remortgaging

If you want to remortgage your home, you have to contact the registered social landlord or local council who handled the sale.

You should also send a copy of the Ranking Agreement you signed when you purchased your home.

If you go ahead with the remortgaging, you'll be responsible for all the costs, including the administrative costs of the social landlord or local council and Scottish Government's solicitors. You will be told at an early stage what these costs will be.

Renting out your home

If you want to let or sub-let your home to another tenant, you have to ask the Scottish Government for written permission.

Shared equity owners may only be allowed to temporarily rent out their home for a limited time in certain circumstances. When you ask the Scottish Government for permission you also have to give the start and end dates of the rental period, as well as the reason you want to temporarily let out your home.

If the Scottish Government doesn't agree to this and give you permission, you aren't allowed to rent out your home.

Selling your home

If you decide in the future that you want to sell your home, the amount of money you'll get will depend on a number of things, including:

what price your home is sold for

how big your equity stake is

how much you have paid towards your mortgage

For example, if you have a 70% share of your home and you decide to sell it, you'll get 70% of the selling price and the Scottish Government will get 30%. From the 70% you're due, you'll need to repay the amount owed to your lender.

The value of your house isn't affected by your share. If your home was worth £100,000 when you bought it and you sell it for £120,000, if you have a 70% share you'll be due 70% of £120,000.